"First of all, it is not the bank that confiscates assets. Such confiscation requires a consolidated decision and a legal basis," he said.
"If there is a clear position at the level of the G7 countries, then we can talk about effective methods of dumping risks associated with the impact on the status of the euro as a reserve currency."
This is exactly what the ECB usually presents as one of the possible risks.
"If you pay attention to the direct communication of the President of the European Central Bank, you will hardly find such a statement. But we are talking about the need to create a clear legal platform, and this is where the political decision is crucial".
Lawyers who will discuss the existence of grounds should be clearly limited to the format of a politically determined decision and should consolidate political elites.
"This is exactly what is happening now," said Pyshnyi.
"The meeting of the G7 finance ministers is currently taking place in Italy, and it should prepare a positioning framework for the G7 summit to be held in June. There they will decide on the fate of the frozen assets and the possibility for Ukraine to use them."
Read also:
"And now the issue of using deferred income is being actively discussed. This is a kind of financial engineering that can give Ukraine from 50 to 75 billion dollars in the horizon of up to 10 years".
This follows an earlier report by Reuters on May 23 that G7 finance ministers, meeting in the northern Italian town of Stresa on May 24-25, would try to reach a consensus on how to use revenues from frozen Russian assets to finance aid to Ukraine.
G7 ministers are trying to reach consensus on a plan that would give Ukraine enough money up front to meet medium-term military and civilian needs, while also signaling to Russia that it cannot stay in the war longer than Ukraine's financial support lasts.
The talks aim to present a proposal to the G7 heads of government, who will meet in southern Italy from June 13 to 15.
G7 negotiators have debated for weeks on how to best use frozen Russian financial assets worth around $300 billion.
The United States insists on finding a way to utilize future income from these assets to support a loan that could provide up to $50 billion in the near term.
Confiscation of Russian assets
The United States and the EU are jointly considering legal authority to direct $300 billion in Russian assets to Ukraine's reconstruction and other needs, U.S. State Secretary Antony Blinken said.
The U.S. Senate Foreign Relations Committee approved a bill to confiscate Russian assets and transfer them to Ukraine to rebuild its infrastructure on Jan. 24.
Outlines of decisions necessary to transfer frozen Russian assets to Ukraine are already being prepared, Ukrainian President Volodymyr Zelenskyy said.
Bill No. 8038 on the transfer of frozen Russian assets to Ukraine received the required number of votes to be passed by the U.S. House of Representatives on April 20.
Ukraine may receive almost $8 billion as part of this procedure.
The bill must now be approved by the U.S. Senate.
EU ambassadors reached a preliminary agreement on May 8 to direct revenue generated by frozen Russian assets toward supporting Ukraine.
The U.S. intends to use seized Russian assets to finance the reconstruction of Ukraine, Blinken confirmed on May 14, during a visit to Kyiv.
The first payment of surplus profits from the use of frozen Russian assets in the EU will be in July 2024, the European Commission announced on May 21.
We’re bringing the voice of Ukraine to the world. Support us with a one-time donation, or become a Patron!
Read the original article on The New Voice of Ukraine
Section: Nation
Author: Андрій Журба
